TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Booming used car market buoys auto loan business
In the first four months of this year, used car financing was the fastest-growing segment in auto loans, ahead of financing for new motorcycles, new cars and commercial vehicles.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Multipurpose vehicles are parked at Tanjung Priok Port's car terminal in Jakarta on Dec. 15, 2023.
(Antara/Andika Wahyu)
L
oan disbursement for automotive purchases continued to grow in the first four months of the year, despite a drop in new car and motorcycle sales, according to data from the Financial Services Authority (OJK).
The Indonesian Automotive Manufacturers Association (Gaikindo) revealed that car manufacturers sold only 263,706 units in wholesale transactions (from factory to dealers) between January and April this year, marking a 22.8 percent drop from the same period last year.
Similarly, the Indonesian Motorcycle Industry Association (AISI) reported that new bike sales fell by 1.1 percent to 2.15 million units.
Despite the declining vehicle sales, auto loan disbursement, which comprises financing for individual and commercial purposes, increased 13.02 percent year-on-year (yoy) to Rp 298.64 trillion.
“Growth is still high. We project that loan disbursement into the sector has the potential to increase by 9 to 11 percent by the end of the year,” Agusman, the OJK's supervisor for multifinance, venture capital and other financial services, said during a press briefing on Monday.
When asked whether the declining sales of new cars and motorcycles had prompted multifinance firms to shift to other sectors, Agusman said he had not observed any such change. He noted that 77.7 percent of multifinance disbursement went into auto loans and that that proportion had remained stable when compared with the same period last year.
Read also: Used cars, two-wheelers buoy automotive market
